[ErickMontreal]

Originally Posted by MonctonRad

According to this video link from BNN, https://www.bnn.ca/video/~1347597, Quebec based department store chain Simons is feeling "stretched" by its recent nationwide store expansion and is seriously thinking about taking on private equity partners.

Up to now, Simons has been a private family firm. Taking on private equity partners would be a bad, bad, BAD move IMHO. Private equity has been the kiss of death for many retailers recently. Capitalists are only concerned about earnings and dividends. They also don't understand how retail works. They can't comprehend strategic investment. They are vultures only interested in the bottom line.

What does this mean for a possible Simons in Moncton? I think this is bad news. Simons has obviously reached the end of the line in terms of its ability to fund future expansion. A Moncton location was always iffy given the size of the community. In the interview on BNN, Peter Simon did mention that they would continue to consider future expansion options. A store at HSC might be a consideration, and a Moncton location might still make sense in terms of supply chain, but I'm a little less hopeful now than I was yesterday.......

Simons is looking to ramp up online sales and to achieve that, they are building a brand new $125-millions distribution center in Québec city. The need of private equity partners is to finance this ambitious project. They are negotiating with the provincial government for a $81-millions grant/loan.


http://www.journaldequebec.com/2018/...ution-a-quebec
http://www.journaldequebec.com/2018/...uebec#cxrecs_s